Recent changes to federal tax law have created confusion around employee and employer transportation benefits. Here is what we know today about the impacts:
- The employer tax exemption for the BICYCLE COMMUTER BENEFIT is no longer available. While employers can still offer this benefit, it is no longer tax-exempt for either employees or employers. This benefit allows employers to reimburse employees up to $20 a month for eligible bicycle commuting expenses. Read more about this here.
- Employees will still be able to get the pre-tax deduction for TRANSIT passes and tickets. Many employees get transit benefits this way and this will not change.
- Employers will no longer have tax exemptions for employee TRANSIT or PARKING benefits.
Learn more about how the new tax law impacts transportation programs here: http://actweb.org/tax-reform-preserves-commuter-benefit/
You can read more about the BICYCLE COMMUTER TAX BENEFIT here:
As noted, these changes are brand new and employers will likely need time to determine how, if at all, they will change their transportation benefits.
